Sertic: Cuts in 26 companies to save RSD 31 bln

BELGRADE - By consolidating business plans in 2015, 26 public enterprises will cut costs by RSD 31 billion, says Serbian Minister of Economy Zeljko Sertic.

The total cost cuts will be significantly higher because this does not take into account companies such as Serbian Railways and Roads of Serbia, Sertic said on Tuesday during a meeting with the directors of over 70 public enterprises, adding that the final figures of potential cost cuts will be known in January.

In 2013, public enterprises had losses totalling RSD 51 billion, said Sertic, who expects the figure to be even higher in 2014.

Sertic told the directors that every item in the business plans will be scrutinised in the future and that they will have to achieve the set objectives and tasks since they are not managing volunteer societies or sport clubs.

The minister of economy criticised the public enterprises for having failed to indicate how they plan to change their staff structures, with Post of Serbia and the national electric power company EPS as the only exceptions in this regard.

Sertic announced that, in the future, meetings will be organised every two or three months and that he will highlight examples of good and bad practices, adding that he will not hesitate to specifically name directors who do not comply with their duties or the authority bestowed upon them by the state.

In the discussion with the minister, the directors of the public enterprises said that they have already started the implementation of austerity instructions issued by the Ministry of Economy and agreed that layoffs should be the last-ditch measure in the process.

Photo Tanjug - Danilo Peternek